Shell says it will cut 2800 jobs following takeover of smaller rival BG Group

Petroleum giant Royal Dutch Shell has said it plans to cut 2,800 jobs following its mega takeover of smaller rival BG Group.

"Shell currently expects an overall potential reduction of approximately 2,800 roles globally across the combined group, or approximately three percent of the total combined group workforce," Shell said in a statement.

Shell said the cuts were in addition to previously announced plans to reduce its own headcount and contractor positions by 7,500 worldwide.

The Anglo Dutch group said that the takeover had won approval from the Chinese government.

Shell's £55 billion (A$115 billion) acquisition of BG Group had already been cleared by authorities in Australia and Brazil, as well as the European Commission.

The deal is aimed at helping Shell boost its flagging output thanks to BG's strong position in liquefied natural gas (LNG), a cleaner alternative to coal and nuclear energy.

The tie-up comes also as oil prices slump on world markets, severely reducing profits at energy majors.